China Securities Regulatory Commission probed Ganfeng Lithium Co Ltd (OTC:GNENY) for alleged insider trading for buying and selling a mainland-listed stock in the secondary market, the Financial Times reports.
Ganfeng Lithium received a case filing from the regulator on July 1. Ganfeng Lithium did not expect the investigation to impact its "normal production and business activities," and it vowed to "actively co-operate" with investigators, FT noted.
The probe comes as Ganfeng Lithium and other leading Chinese resource mining and processing groups solemnize state-backed efforts to consolidate China's dominance over the supply chain for electric vehicles and batteries.
Ganfeng Lithium is a leading Chinese biggest lithium producer and a critical Tesla, Inc (NASDAQ:TSLA) and Bayerische Motoren Werke AG (OTC:BMWYY) supplier.
Ganfeng Lithium battled volatility amid fluctuating lithium carbonate prices and China's pandemic lockdowns disrupting supply chains.
The nationalization of the lithium industry also posed concerns over Ganfeng Lithium's assets in Mexico.
Analysts expect the Sonora project in Mexico to account for about 5% - 8% of Ganfeng's total lithium output by 2025, remaining upbeat about the prospects of the Chinese electric vehicle industry.
Analysts and investors saw immense growth potential as rival carmakers overhauled their business models to focus on electric cars, whose batteries rely on lithium.
Recently, leading battery maker Contemporary Amperex Technology, miner Tianqi Lithium and Huayou Cobalt, another significant Chinese raw material supplier, moved to tap investors for over $10 billion in capital to expand operations.
Price Action: TSLA shares traded lower by 1.73% at $669.98 in the premarket on the last check Tuesday.

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Tuesday, July 05, 2022

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